Telecommunication Expenses

The telecommunications services sector (i.e. mobile phones, Internet and broadband/Internet services) has grown rapidly in Taiwan, and as communications technologies have advanced, telecommunications costs have declined.

According to the Ministry of Transportation and Communications, telecommunications companies are classified as one of two types:

Type I:The company owns the telecommunications equipment for its operations.

Type II:The company does not have any telecommunications equipment of its own; instead, it rents equipment from another telecommunications company to provide value-added services.

There are currently 458 companies in Taiwan providing Type II telecommunications services such as the following:

Intra-corporation communications services

Audio conference services

Internet access services

Bandwidth resale services

Store and forward network services

Store and retrieve network services

Video conference services

Data exchange communications services

International simple resale services

Internet telephony services

Wholesale resale services

Voice information paid services

Mobile resale service

Mobile resale and value-added service

In general, the service fees of Type II telecommunications enterprises vary depending on the customer’s requirements, demand and usage.

Domestic Calling Rates (Local Phone and Domestic Long-Distance Phone)

The main domestic phone service provider in Taiwan is the Chunghwa Telecom Co., Ltd. The following table sets out the installation fees and communications charges for residential and business customers:

Domestic Phone Communication Charges

Unit: NTD

Installation

Monthly fee

Charge

Residential

Business

Time Period

Local Phone

Domestic Long-Distance Phone

Basic

Internet access

1,000 or 1,500

50-95

245-365

Standard Time

1.6/3 min1.6/5 min1.5/5 min

2.7/10 min

1.6/3 min

Reduced Time

1/10 min

1/10 min

1/3 min

Source: Chunghwa Telecom Co., Ltd., July 2013

Note: The Normal Time Period refers to Monday through Friday, 8:00 am to 11:00 pm, and Saturday from 8:00 am to 12:00 noon. The Reduced Time Period refers to Monday through Friday from 11:00 pm to 8:00 am, Saturday 12:00 noon to Monday 8:00 am, and all day on official public holidays.

Mobile Phones

Mobile phone subscriptions have increased considerably in recent years. The cost of mobile phones is very competitive and all of the mobile phone companies frequently offer special promotions. If the higher monthly fee is chosen, the communication fee generally will be lower. The communication fee also will be lower if the caller and receiver use the same service provider. The following summarizes mobile phone costs with three different monthly fees of Chunghwa Telecom Co., Ltd.:

Mobile Phone Communication Charges

Unit: NTD/Second

Monthly fee

Communication Fee

Different Service Providers

Both Parties with Same Service Provider

Standard Time

Reduced Time

583

0.1087

0.06

0.05

589

0.0547

183-1,683

0.1393-0.0914

0.08-0.03

0.07-0.03

Source: Chunghwa Telecom Co., Ltd. , July 2013

Note: The Normal Time Period refers to Monday through Friday, 8:00 am to 11:00 pm, and Saturday from 8:00 am to 12:00 noon. The Reduced Time Period refers to Monday through Friday from 11:00 pm to 8:00 am, Saturday 12:00 noon to Monday 8:00 am, and all day on official public holidays.

For fees other than those of Chunghwa Telecom Co., Ltd., see the websites of the following mobile phone companies:

International Calling Rate

International calling rates differ depending on how the call is placed, i.e. direct dial or through international calling cards. Every provider offers a different discount for international calling. The following sets out the international calling rates of Chunghwa Telecom Co., Ltd.:

Note: The Normal Time Period refers to Monday through Friday, 8:00 am to 11:00 pm, and Saturday from 8:00 am to 12:00 noon. The Reduced Time Period refers to Monday through Friday from 11:00 pm to 8:00 am, Saturday 12:00 noon to Monday 8:00 am, and all day on official public holidays.